Business Finance Agreements

What is a business finance agreement?

A business finance agreement is a contract between two parties. The lender provides the borrower with money or valuable assets, and the borrower has to repay the lender together with interest.

The business finance agreement sets out the terms of each party’s obligations, responsibilities and liabilities, together with the amount borrowed, repayment terms, due dates, interest and other associated costs. It also sets out details of what should happen if any of the terms set out in the agreement are not complied with.

Business finance agreements may be needed in acquisitions, international M&As, purchasing business property, starting a business or expanding your business.

What type of businesses would need business finance agreements?

It doesn’t matter what type of business you are. If you are entering into a financial agreement with another party, as a borrower or a lender, you’ll need a legally binding business finance agreement in place.

Our business finance agreement specialists have worked with a significant number of business types, both domestic and cross-border, such as banks, investors, property developers, manufacturers, retailers, service providers and product suppliers. The businesses we work with range from business start-ups and SMEs to international and large corporations.

Why do you need a lawyer for your business finance agreement?

You could draft your own business finance agreement. However, we highly advise you to speak to a lawyer who specialises in business finance agreements. Business finance agreements are legally binding documents. You therefore need to ensure that the agreement offers you financial, reputational and legal protection and works in your best interests.

There are many intricacies involved in drafting a business finance agreement and without understanding the law, and the legal implications a poorly drafted clause may have, drafting an agreement yourself could have a detrimental effect on your business.

In many instances, financial companies will take security over business assets such as property or vehicles and in many instances involving a limited company will insist on the personal guarantee of a director. This means that whilst the business is a separate entity, in the event it cannot pay its finance your personal assets are at risk. Our specialist team ensures you’re fully aware of the exposure to your business and personal assets in any event.

How much does an employment lawyer cost?

It’s difficult to say how much it will cost for an employment lawyer to represent you until we know the circumstances of your case. However, we want to be as transparent as possible when it comes to the legal costs involved in an employment case, so have set out the fees involved in our Fees Transparency page. For more details about our fees and how we can help, simply contact us today and one of our experts will be happy to discuss this with you.

Why choose Inspire Legal Group?

Our business lawyers are specialists in drafting and reviewing business finance agreements. Our team has a broad knowledge of finance, legal and commercial sectors which support our business clients with an array of these matters.

We have the skills and experience to translate commercial terms to our clients and inform them to make comprehensive choices for themselves and their business.

We’ve worked with a vast amount of businesses, both borrowers and lenders, of all types from start-ups and SMEs to international and large corporations.

We’re a technology-driven business, with the latest legal technology enabling you to sign contracts from anywhere and for us to undertake witnessing via Zoom.